| SINGAPORE : The improving property market saw more owners turning to auction as a mode of sale to dispose their assets.
According to Colliers, the number of properties which went under the hammer doubled in the second quarter compared to the first quarter.
Despite that, the total sales value fell by 47 percent.
176 properties were auctioned off in the second quarter of the year, almost twice the number in the previous three months.
Some consultants say this could imply that the stigma attached to property auctions seen as a platform for only forced bank sales is fading.
And more owners are now using this avenue to sell their properties in the strengthening market.
"Some of them may have bought other properties and are using the opportunity to sell off some of their properties due to the increase in prices. For example, we do have owners putting up quite a number of good class bungalows for auction. And if you compare prices in 2004, good class bungalow prices have gone up 10 percent to 20 percent," said Grace Ng, executive director of Colliers.
Although more properties have been put under the hammer, total sales values declined significantly.
$37.4 million worth of properties were sold in the second quarter compared to $70.1 million in the preceding period.
"There is an absence of large high value transactions - for example good class bungalows and investment properties such as land. If you compare with the first quarter, there is only one development land in Geylang at $1.14 million compared to the first quarter where we have over $29 million of development properties sold," said Ng.
Many transactions only occurred only after the auction, when sellers and buyers subsequently agreed on the price.
But it would appear that most of those who choose the auction route are high-end property owners.
Owners of mass market homes have stayed away because of overall weak demand for this sector.
- CNA /ls
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